Big shock from the U.S. job market — and it just broke the story that Fed Chair Jerome Powell was trying to sell.
🧾 What Happened?
The U.S. added just 73,000 jobs in July — way below the 100,000+ that experts expected. But it gets worse:
🔻 June’s jobs were revised down from 147,000 to just 14,000
🔻 May’s dropped from 144,000 to only 19,000
That’s 258,000 jobs erased from the last two months — more than the population of Scottsdale, Arizona!
🔺 The unemployment rate also ticked up to 4.2%, which matched forecasts but still shows things are getting weaker.
🧨 Why It Matters
Powell said earlier this week that the labor market was “still strong.”
Just two days later, the data proved him wrong. Hard.
💥 Markets React: Rate Cut Incoming?
Right after the report, markets shifted gears fast:
• September rate cut odds jumped from 40% to 75.5%
• Bond yields dropped: the 2-year fell 15bps, the 10-year dropped 8bps
• Traders are now betting big that the Fed will lower interest rates at the next meeting
🔎 So What Does It Mean?
This shock report raises two possible scenarios:
1️⃣ The U.S. job market is actually heading into a recession
2️⃣ The data is broken and missed a quarter million jobs
Either one is bad for the Fed — and investors know it.
🎯 Bonus: Trump Fires Back
Donald Trump jumped in on Truth Social, blasting Powell:
“Too Little, Too Late. DROP THE RATE! The good news is that Tariffs are bringing Billions of Dollars into the USA!”
💬 What do you think — will the Fed cut rates in September? Is the U.S. economy in trouble, or is the data just broken? Share your thoughts ⬇️
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